Question
HELP WITH THE WORKINGS PLEASE The current book value per share of B.L. Black & Sons is $5.35 and the required return on the stock
HELP WITH THE WORKINGS PLEASE
The current book value per share of B.L. Black & Sons is $5.35 and the required return on the stock is 15.5 percent. The firm expects earnings per share of $2.25 next year with annual earnings growth of 4.5 percent. What is the current market value of this stock?
A) $10.91
B) $9.16
C) $13.88
D) $18.27
E) $20.30
Three months ago, Trevor purchased 500 shares of stock at a cost per share of $64.20. The purchase was made on margin with an initial margin requirement of 65 percent. Trevor pays 1.6 percent over the call money rate of 4.8 percent. What will his total dollar return be on this investment if he sells his shares today at a price per share of $63.40? Ignore dividends.
A) -$739.67
B) -$575.60
C) -$191.19
D) $234.95
E) 224.40
The geometric return on an asset over the past 12 years has been 14.50 percent. The arithmetic return over the same period was 14.96 percent. What is the best estimate of the annual return on this asset in the future?
A) 14.50 percent
B) 14.86 percent
C) 14.88 percent
D) 14.92 percent
E) 14.96 percent
Sun Lee purchased 1,500 shares of Franklin Metals stock for $16.80 a share. The stock was purchased with an initial margin of 65 percent. The maintenance margin is 30 percent. The stock is currently selling for $17.10 a share. What is the minimum cash amount that he must have in the stock account today to avoid a margin call?
A) $0
B) $7,695
C) $7,973
D) $7,760
E) $7,808
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